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The Normal Cost Given Slope formula calculates the cost associated with completing a project activity within the normal time frame, considering the relationship between crash cost, cost slope, and time differences between normal and crash durations.
The calculator uses the formula:
Where:
Explanation: The formula calculates the baseline cost of an activity when completed within normal time by subtracting the cost savings from not crashing the activity from the crash cost.
Details: Calculating normal cost is essential for project budgeting, cost estimation, and determining the cost-effectiveness of crashing activities to accelerate project completion.
Tips: Enter crash cost in units, cost slope in units per day, normal time in days, and crash time in days. All values must be valid positive numbers, and normal time should be greater than or equal to crash time.
Q1: What is the difference between normal cost and crash cost?
A: Normal cost is the cost when an activity is completed within normal time, while crash cost is the higher cost associated with completing the activity in the shortest possible time using additional resources.
Q2: How is cost slope determined?
A: Cost slope represents the additional cost per unit time reduction and is calculated as (Crash Cost - Normal Cost) / (Normal Time - Crash Time).
Q3: When should this calculation be used?
A: This calculation is used in project management for time-cost trade-off analysis and determining the most cost-effective schedule for project activities.
Q4: What are the limitations of this formula?
A: The formula assumes a linear relationship between time and cost, which may not always hold true in complex projects with non-linear cost structures.
Q5: Can this formula be used for multiple activities?
A: This formula calculates costs for individual activities. For multiple activities, project managers need to consider the overall project network and critical path.